1. Field
Example embodiments relate to revenue evaluation of online advertising systems.
2. Description of the Related Art
Online advertising has become an emerging solution for organizations and individuals that wish to promote their goods and services, and providers of online advertising have reaped the rewards of this booming industry. Billions of dollars are now being spent per year on online advertising, and there seems to be no end to the growth of the Internet or online advertising.
One of the attractive features of online advertising is the various revenue models for online advertisement providers. Common revenue models can include cost per thousand impressions, cost per visitor, cost per view, cost per click, cost per action, cost per acquisition, cost per conversion, and fixed cost. Another attractive feature is the flexibility per revenue model. For example, in a cost per click model, a cost per click of a clickable advertisement or a cost per impression can vary depending on the content of the clickable advertisement or impression, respectively. Typically, advertisements that include content in high demand may warrant a higher associated cost. For example, an advertisement including the terms “free music download” is most likely in higher demand than an advertisement including “expensive paperclips.” Therefore, the cost of the higher demand advertisement will be greater.
Despite the above features and countless other attractions that lure advertisers into online advertising, there are tradeoffs for advertisers and online advertisement providers. One tradeoff can be the complexity of determining pricing and potential revenue derived from an online advertisement; including determining revenue for the advertisement provider and revenue for the advertiser caused by an online advertisement. Because revenue evaluations for both the provider and the advertiser are complex and critical, both providers and advertisers would benefit from methods or systems for modeling advertising revenue.